ZWC Portfolio | RootCloud Among the Leading Investment Cases in the Trillion-dollar yuan (USD$144 billion) IIoT Sector
Mar 09, 2020

During the construction of Wuhan Huoshenshan Hospital, more than 4,000 workers and nearly 1,000 pieces of heavy machinery and equipment work on 24-hour shifts every day.  Meanwhile, Sany Heavy Industry’s Industrial Internet of Things (IIoT) platform, RootCloud, also worked non-stop throughout the period to “cloud monitor”  hundreds of its equipment, reporting data in real-time,  and issuing timely failure warnings. Thanks to data provided by IIoT platforms like RootCloud, we are able to have a complete understanding of the working conditions of various types of machinery during the construction period and a clearer picture of this construction ‘miracle’.

IIoT is not a new concept. It was first proposed by GE in 2012. Industrial Internet of Things, in essence, establishes interconnectivity between machines, raw materials, production processes, and workers, and through the use of technologies such as big data and AI, accomplishes intelligent control of machines and the optimization of operation process, thereby creating value in the industrial chain.

China, a manufacturing powerhouse, has countless applications for IIoT. According to the Alliance of Industrial Internet, the primary market for the Industrial Internet of Things was estimated to be worth ¥570 billion in 2017 (USD$82 billion). With an average annual compound growth rate of 18%, it is expected to reach a trillion yuan (USD$144 billion) in 2020.

RootCloud, founded in 2016, is an industrial internet of things platform incubated by Sany Heavy Industries. They started with industrial aftermarket services as the core and provided device networking, real-time monitoring, remote operation, and predictive maintenance, and other services for industrial equipment assets.

With its PaaS model, the company has since expanded from construction machines into air compressors, stamping machines, die-casting machines and so on, covering 61 subsectors in just two years after being founded. At the same time, considering the ever-increasing number of connected equipment,  and more data being collected from each equipment, RootCloud set up an IoT hub to gather all equipment data, and then connected to ERP, MES, and other upstream systems.

In addition, as there is a strong local cluster effect in the IIoT, RootCloud has launched a vertical industrial platform for leading players in the industry. It allows them to build IIoT platform in their own verticals, transcribing their years of accumulated experience and knowledge in the form of algorithm models and the like, and resulting in a portable, reusable component library for upper-layer applications. It also allows the sharing of industrial resources and information for new business models creation.

As for the small and medium-sized enterprises, RootCloud launched a developer platform named “RootCloud”. Small and medium-sized enterprises can develop their own scenarios-based industrial applications and transact online.

As of June 2019, the IIoT platform of RootCloud can cover 95% of mainstream industrial controllers, supporting 400 + kinds of industrial protocol parsing, and connecting more than 560,000 industrial devices.

In June 2019, ZWC Partners participated in the Series B investment in RootCloud.